SA car sales | Dealer sales hold steady as SA vehicle market continues to rebound – NADA

New vehicle sales reached 38,030 units in June 2021.

Despite the Covid-19 and its challenges, the business results are encouraging.

NADA says its dealer network will do everything possible to keep the momentum going in July.

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Following analysis of the latest sales data released by Naamsa, the fact that 86.3% of the 38,030 new vehicles sold in South Africa in June passed through distribution channels is a strong indicator of growing confidence in the market. purchase of fixed assets by both companies and consumer sectors of the market.

Retail sales continued to show a gradual recovery in June 2021, which was in line with industry expectations, despite the growing impact of the Covid-19 pandemic on our daily lives as the country moved from Lockdown Level 2 to Level 3. At the end of June, the country had a terrible week with rapidly increasing infection levels and the imposition of a Lockdown Level 4.

Volkswagen sold 1,636 Polo Vivo in June 2021

Increase in sales compared to June 2020

Total sales of 38,030 units represented an increase of 6,387 units or 20.2% over June 2020 performance, while total vehicle sales for the first half of 2021 were 40.1% higher than those of the same period in 2020. It is also encouraging. to see the rental industry increase its purchases since they represented 7.6% of total sales. This shows growing business confidence in this key economic indicator and means more vehicles will enter the used car market when the time comes to renew the fleet.

Another positive sign was the 50.9% growth in exports of multilayer vehicles. This is the key to success through the economy of production of scale for most local automakers.

However, auto dealers across South Africa are also realistic. They know well that it will be difficult to keep the momentum going in July as major costs of living, such as electricity and water, rise, along with the price of fuel and, in many cases, municipal tariffs and taxes. During this time, dealers will also be dealing with the implementation of the Privacy Act (POPIA), the planned deployment of the AARTO and the competition guidelines for the local auto industry.

Mark Dommisse, President of the National Association of Automobile Dealers (NADA)

Marc Dommisse

Marc Dommisse

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